Check Before You Invest : Riddhi Steel & Tube Ltd

Snapshot

Q.1 Which industry/sub-sector does Riddhi Steel & Tube Ltd belong to?

Riddhi Steel & Tube Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Riddhi Steel & Tube Ltd a good quality company?

Riddhi Steel & Tube Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Riddhi Steel & Tube Ltd undervalued or overvalued?

Riddhi Steel & Tube Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Riddhi Steel & Tube Ltd a good buy now?

Riddhi Steel & Tube Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd revenue growth is 19.4% for FY-2025, which is above its 5-year CAGR of 6.04%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on capital employed is 11.58% for FY-2025, which is above its 5-year historical median of 9.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on Asset is 3.82%, which is above its 5-year historical median of 1.82%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on equity is 12.71% for FY-2025, which is above its 5-year historical median of 6.7%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Cash conversion cycle is 129 days, in line with its 5-year historical median of 129 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.97	1.73
ROE	12.71	6.7
ROCE	11.58	9.47
Cash Conversion Cycle	129 days	129 days

Q.6 Gross Profit margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.7% for FY-2025, which is in line with its 5-year median of 5.67% indicating stable margins.

Q.8 Net Profit Margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Net Profit Margin is 1.94% for FY-2025, is above with its 5-year median of 1.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.4	2.6
Operating Profit Margin	5.7	5.67
Net Profit Margin	1.94	1.12

Q.9 Debt to Equity ratio of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Debt-to-Equity ratio is 2.09, which is above with the industry average of 0.35, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Debt to cash flow from operations is 10.22, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Riddhi Steel & Tube Ltd?

Promoters hold 74.61% of the Riddhi Steel & Tube Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Riddhi Steel & Tube Ltd vs industry peers?

Riddhi Steel & Tube Ltd revenue CAGR is 6.04%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.4	11.4
Gross Profit Growth	30	19.4
Operating Profit Growth	15.8	13.9
Net Profit Growth	60	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.97	1.33
ROE	12.71	9.64
ROCE	11.58	12.04
Cash Conversion Cycle (days)	128.97	80

Valuation & price assessment

Q.1 Stock return of Riddhi Steel & Tube Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 80.47% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	80.5%	88.6%	257.1%

Q.3 Valuation ratios of Riddhi Steel & Tube Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	34.42	15.24	17.26
Price to Book	3.94	0.79	1.63
Price to Sales	0.67	0.13	0.74
EV to EBITDA	15.25	8.15	10.03

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